Lumentum (NASDAQ:LITE) Shares Down 11.2% on Insider Selling

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price was down 11.2% during trading on Tuesday after an insider sold shares in the company. The stock traded as low as $681.10 and last traded at $695.19. Approximately 6,205,673 shares were traded during trading, an increase of 19% from the average daily volume of 5,210,936 shares. The stock had previously closed at $783.25.

Specifically, CFO Wajid Ali sold 5,302 shares of the stock in a transaction on Friday, February 27th. The stock was sold at an average price of $691.13, for a total transaction of $3,664,371.26. Following the completion of the transaction, the chief financial officer directly owned 66,287 shares in the company, valued at approximately $45,812,934.31. This represents a 7.41% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink.

Analysts Set New Price Targets

A number of research analysts have commented on LITE shares. Bank of America upped their target price on shares of Lumentum to $520.00 and gave the company a “neutral” rating in a research report on Wednesday, February 4th. Weiss Ratings restated a “hold (c-)” rating on shares of Lumentum in a report on Monday, December 29th. Wolfe Research reaffirmed an “outperform” rating and set a $240.00 price objective on shares of Lumentum in a research report on Wednesday, November 5th. Citigroup lifted their target price on shares of Lumentum to $560.00 and gave the company a “buy” rating in a report on Thursday, February 5th. Finally, Susquehanna upped their price target on Lumentum to $550.00 and gave the stock a “positive” rating in a research note on Wednesday, February 4th. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $495.19.

More Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Nvidia committed to a $2 billion strategic investment in Lumentum to accelerate R&D and U.S. photonics capacity — a direct customer/funding commitment that de‑risks large capital expansion tied to AI infrastructure demand. Read More.
• Positive Sentiment: Analysts and sector research continue to position Lumentum as a top beneficiary of the multi‑year optics upcycle driven by hyperscaler AI spending — supporting a longer‑term bullish thesis. Read More.
• Positive Sentiment: Barclays raised Lumentum’s price target to $750 (Equal Weight), signaling additional analyst upside and reinforcing the view that valuation can move higher if growth/profits track AI demand. Read More.
• Neutral Sentiment: Market commentary emphasizes that much of the recent move is theme-driven (AI optics rally) rather than new company-level revenue disclosures; this supports momentum but increases sensitivity to sector sentiment. Read More.
• Neutral Sentiment: Lumentum’s management presentation at the Morgan Stanley TMT conference is available (transcript), useful for detail on capacity plans and margins but not a near‑term market mover by itself. Read More.
• Negative Sentiment: Short‑term profit‑taking hit the stock after a sectorwide surge; headlines noted LITE was among names “hammered” as investors locked in gains following the Nvidia announcement. That selling pressure explains today’s pullback. Read More.
• Negative Sentiment: High-profile commentary urged caution: Jim Cramer said he would be a seller rather than a buyer after the recent rally, which can amplify retail selling. Read More.
• Negative Sentiment: Insider selling: CFO Wajid Ali sold 5,302 shares on Feb. 27 (~$3.66M), reducing his stake ~7.4% — a data point some investors view negatively even if the sale may be non‑operational. Read More.

Lumentum Stock Performance

The company has a current ratio of 0.61, a quick ratio of 0.45 and a debt-to-equity ratio of 0.06. The company has a market capitalization of $49.58 billion, a price-to-earnings ratio of 213.02 and a beta of 1.38. The stock’s fifty day simple moving average is $468.80 and its 200-day simple moving average is $302.62.

Lumentum (NASDAQ:LITE) last posted its quarterly earnings results on Tuesday, February 3rd. The technology company reported $1.67 EPS for the quarter, topping the consensus estimate of $1.41 by $0.26. The business had revenue of $665.50 million during the quarter, compared to the consensus estimate of $646.74 million. Lumentum had a net margin of 11.95% and a return on equity of 17.27%. The company’s quarterly revenue was up 65.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.42 earnings per share. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. Analysts predict that Lumentum Holdings Inc. will post 0.03 EPS for the current year.

Institutional Trading of Lumentum

Hedge funds have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd grew its holdings in Lumentum by 46,666.7% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 8,418 shares of the technology company’s stock worth $3,103,000 after acquiring an additional 8,400 shares in the last quarter. Reflection Asset Management acquired a new stake in shares of Lumentum in the 4th quarter valued at $59,000. MidFirst Bank purchased a new stake in shares of Lumentum during the 4th quarter worth $84,000. Pacer Advisors Inc. grew its stake in shares of Lumentum by 33.1% during the fourth quarter. Pacer Advisors Inc. now owns 12,365 shares of the technology company’s stock worth $4,558,000 after purchasing an additional 3,074 shares in the last quarter. Finally, Amanah Holdings Trust acquired a new position in shares of Lumentum during the fourth quarter worth $49,760,000. Institutional investors and hedge funds own 94.05% of the company’s stock.

Lumentum Company Profile

Lumentum Holdings Inc, headquartered in San Jose, California, is a leading provider of photonic technologies that enable high-speed optical communication networks and advanced industrial applications. The company designs and manufactures a broad range of lasers, optical modules and subsystems tailored to the evolving requirements of telecommunications carriers, cloud data centers and enterprise networking.

Its core product portfolio includes tunable and fixed-wavelength laser transmitters, coherent optical engines, transceivers for long-haul, metro and data center interconnects, as well as test and measurement instruments.